A makeover of an Argentine deal backed by corporate loans has triggered a two-notch upgrade on the national scale to BBB+' from BBB-' by Standard & Poor's.

Structuring agent HSBC "was looking to improve the payment capacity for investors," said Hernan Gutierrez, head of trust & fiduciary products at ABN Amro Argentina, the deal's trustee. Retooling the Ps35 million (US$9.5 million) senior tranche was two-pronged. HSBC raised the credit enhancement provided by a subordinated piece to 30% from a previous 20% and upped the weighting of the stronger credits in the pool, according to a source close to the transaction.

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